Week’s Best: Job Cuts at UBS, Focus’s IPO Headfake, Wells Saga

By

Steve Garmhausen

July 27, 2018 1:24 p.m. ET

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Focus flops—then surges: Focus Financial’s closely watched IPO fell short of the company’s target, raising $535 million in shares valued at $33 each on Wednesday. Executives of the advisory-firm aggregator had set a goal of $600 million or more with a target price range between $35 and $39 per share. But my mid-Friday, FOCS shares had popped 15%, to $38. “Industry observers had viewed the IPO, the first in the wealth management category since February, as a bellwether for other RIA aggregators considering public offerings,” we wrote. So who’s up next?

As the Wells Turns:Wells Fargo denied that it plans to combine its retail brokerage businesses. The Wall Street Journal had reported in June that Wells was looking to merge its Wealth Brokerage Services (around 3,400 brokers who work out of retail bank branches) and Private Client Group (around 9,500 brokers who work out of Wells’ brokerage offices). The plan was said to involve reducing around 1,000 jobs through attrition. Heather Hunt-Ruddy, head of client experience and growth for Wells Fargo Advisors, rejected the idea of a “channel collapse,” while maintaining that Wells plans to improve operational efficiency across its wealth management business lines.

Trapped by the tax man: Our most popular story of the week had to do with wealthy folks who dream of fleeing high-tax states like New York and California—and why they might not follow through. The reason, in short, is that state tax authorities make you jump through hoops to prove you’ve really moved your residence out of state. “New York and other high-tax states play hardball, including issuing subpoenas for credit card statements, bank transactions and phone records,” we wrote. “They’ve been known to interview doormen or confirm doctors’ appointments.” In other words, moving to Florida may end up being more of a hassle than it’s worth.

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